Energy

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In the long-term, the investment programme will play a key role in ensuring continuity of supply in Poland, both in the construction of new generation capacity and distribution grids as well in the scope of retrofitting and renovation of the managed infrastructure.

For several years TAURON Dystrybucja has been consistently investing in modernisation and extension of its power distribution grid. Until 2025 the company plans to spend approximately PLN 16 billion for this purpose. Each year thousands of projects are executed, with the main aim to improve security, reliability and quality of electricity supplies.

Every year TAURON Dystrybucja connects over 30 thousand new clients, actively responding to their investment needs. These investment projects to build new stations and extend the grid ensure the highest qualitative standards of electricity supplied to consumers who are vulnerable to blackouts and customers locating their operations in economic zones under development.

Factors generating a need for large investment in the distribution segment include retrofitting of existing assets and change in grid topology and technology – mainly in medium voltage lines. The current status of distribution grids is the underlying factor affecting the reliability, level of losses and may constitute a constraint for the development of the dispersed energy sector and functioning of prosumers. For the construction and assessment of the impact of investment strategies on reaching long-term goals the company uses modern IT systems and rules of prioritisation of investment needs. The aim is to target expenditure in places with the strongest impact on improving electricity supplies and the effectiveness of distribution grid performance while improving the quality of electricity supply indices.

The main objective was to implement a tool supporting strategic, i.e. long-term management of grid assets during their life cycle to simulate and optimise the medium and long-term effects of business decisions. The outcome is produced in the form of a detailed analysis of the current investment strategy, i.e. mapping of age structure changes, asset value replacement, capital expenditures and reliability parameters over the next 30 years.

This application also supports in-depth analyses of the SAIDI and SAIFI indices. Moreover, it will be extended by a module to optimise these figures (e.g. capital expenditures) through iteration, taking into account certain criteria and constraints. In this way, it will be possible to build optimum investment strategies and allocate budgets to various segments and equipment groups.

In the context of ensuring energy security, upgrading current generation units to stringent European Union requirements on the emissions of carbon dioxide and other pollutants released during energy production using conventional fuel is particularly important.

In 2015 the maximum installed capacity of the Group’s units was 16.6 GW. More than 90% of this capacity is attributable to coal-fired units (8 conventional power plants and combined heat and power plants) – 4.8 GWe and 2.5 GWt. The second stage of the Marszewo wind farm extension has also been completed. Accordingly, TAURON’s installed wind capacity tops 200 MW.

Intensive work to build a coal-fired unit with a capacity of 910 MW in Elektrownia Jaworzno III is in progress. Besides this investment in Jaworzno, TAURON Wytwarzanie and PGNiG Termika are jointly building a CCGT unit in Elektrociepłownia Stalowa Wola with a capacity of 442MWe, including 221 MWe attributed to TAURON (50/50 split) – In upcoming years the company is considering the construction of a gas-fired unit with a capacity of 400-500 MWe in Elektrownia Łagisza.

The TAURON Group’s largest investment is underway in Elektrownia Jaworzno III, namely a coal-fired unit with a capacity of 910 MW. It will meet the highest environmental standards, emitting fewer hazardous substances than the legacy generation unit while maintaining high generation efficiency. Following commissioning scheduled in 2019, as a large conventional facility, the unit in Jaworzno will be a key element in ensuring the stable performance of the National Power System.

Environmental effect:

(comparison of emissions per MWh of legacy 120MW units and 910MW unit):

legacy 120 MW units

new 910 MW unit

reduction per MWh

Dust

0.2s2 kg

0.02 kg

-91%

SO2

6.40 kg

0.4 kg

-95%

NOx

2.23 kg

0.4 kg

-82%

CO2

950 kg

692 kg

-28%

In 2015, TAURON Ciepło, another company in the generation segment built a heating unit with a net electric capacity of 58.3 MWe and heat capacity of 86 MWt. The investment was completed in December 2015. No new investments are planned in the near future.

In early January 2016 the first synchronisation of a new heating unit with the national power grid took place. Tests were also conducted during which the first heat from the new unit was supplied to the heating system in Tychy. The investment is the second stage of construction of new capacity in the Tychy plant. It comprises a BC-50 district heating unit with a net electric capacity of 58.3 MWe and heat capacity of 86 MWt with a fluidised-bed boiler, condensing-extraction turbine and accompanying facilities as well as the required infrastructure.

In the first phase of the project (2008-2012) the coal-fired boiler was adapted to combustion of biomass only. A grate boiler was also constructed. The unit’s construction cost was approximately PLN 618.5 million. It will be the basis source of heat supply for the city of Tychy. Construction commenced in December 2013. Tauron Ciepło is scheduled to begin operating the unit at the end of H1 2016.

In 2015 TAURON Ciepło completed the construction of a heat supply main connecting Siemianowice Śląskie and Katowice to the network operated by the combined heat and power plant belonging to CEZ Chorzów. This investment consumed approximately 50 million PLN. This project connected the ZW Katowice west main with the network of heating plants in Siemianowice Śląskie. An intermediate pumping station was also built, including network pressure control systems in ZW Katowice and CEZ Chorzów (formerly Elektrociepłownia Chorzów Elcho) mains.

The modernised and developed network ensures the security of supply to TAURON’s current and new consumers. During this investment nearly 1.5 km of new networks were constructed, while nearly 3 km were modernised and reconstructed. The applied technologies mitigate heat losses, enhance network efficiency and reduce contamination.